There is a three digit scoring model for consumer’s score which is indicative of the credit history of the consumer. Consumers are given a score between 300 and 900 based on their financial behavior. Relevant information is collected from banks, and lenders. Information is also collected from other parties to whom the consumer may owe some monies such as credit card businesses, and tax departments. Promptness in payment of regular dues such as LIC premiums, and other retirement savings are also considered. Consumers who have a score above 800 and closer to 900 can get their loans approved almost instantaneously.
Do you know how important it is to maintain a good credit history for loans and credit cards? Basically the credit history is a record. It has information about an individual’s or a company’s past borrowings and repaying details. This also includes information about the late payments and bankrupt conditions. Lenders and other financial institutions like banks mandatorily request for a credit history to calculate an individual or a company’s credit worthiness if a loan request is made. Credit worth is identified by an individual’s credit record. To make it clear, credit worthiness is the willingness to pay back an acquired debt. Willingness is calculated on how an individual made well-timed payments to other lenders in the past.
Home loan interest rates definitely have an impact on the borrower’s loan eligibility. This is because the interest component can increase the equated monthly installment that would become applicable on any new home loan. Such equated monthly installment or the EMI is determined at the time of disbursing the loan. While the equated monthly installments do not vary during the term of home loan, finding low home loan interest rates at the time taking home loan make the borrower eligible for slightly larger home loan.
Many home loan applications are refused due to simple goofs. In the next lines, you will read some of the most common bloopers that we fall into when applying for a home loan. You might end up saving a small fortune on your next home loan if you read on.